Cracker Barrel Old Country Store (CBRL)

Return on assets (ROA)

		Aug 2, 2024	Jul 28, 2023	Jul 29, 2022	Jul 30, 2021	Jul 31, 2020
Net income	US$ in thousands	40,930	99,050	131,880	254,513	-32,475
Total assets	US$ in thousands	2,161,490	2,218,090	2,294,910	2,391,690	2,544,260
ROA		1.89%	4.47%	5.75%	10.64%	-1.28%

August 2, 2024 calculation

ROA = Net income ÷ Total assets
= $40,930K ÷ $2,161,490K
= 1.89%

Cracker Barrel Old Country Store's return on assets (ROA) has exhibited a declining trend over the past five years, as indicated in the provided data. The ROA decreased from 10.64% in July 2020 to 1.89% in August 2024. This decline may raise concerns about the company's efficiency in generating profits relative to its total assets.

A higher ROA signifies better asset utilization to generate profit, indicating a more efficient and effective operation. Conversely, a declining ROA may suggest deteriorating performance in utilizing its assets to generate earnings.

It is essential for investors and stakeholders to closely monitor the trend in ROA to assess the company's operational efficiency and profitability. Furthermore, comparing Cracker Barrel Old Country Store's ROA with industry benchmarks and competitors can provide additional insights into its performance relative to peers in the sector.